Logistics included in UAE economic activities eligible for 100% foreign ownership
The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has approved the sectors and economic activities eligible for up to 100% foreign ownership in the UAE.
A total of 122 economic activities across 13 sectors were specified to be eligible for up to 100 percent foreign ownership, such as renewable energy, space, agriculture, manufacturing and logistics.
The decision provides investors with an opportunity to acquire various shares in a number of economic activities including the production of solar panels, power transformers, green technology, and hybrid power plants.
Areas of foreign ownership also include transport and storage, which allows investors to own projects in the field of e-commerce transport, supply chain, logistics, and cold storage for pharmaceutical products.
The Cabinet's decision includes other areas of ownership by foreign investors, including hospitality and food services, information and communications, as well as professional, scientific and technical activities, thereby allowing for ownership in laboratories for research and development in biotechnology.
The list also includes administrative services, support services, educational activities, healthcare, art and entertainment, and construction.
Local governments will determine the ownership percentage of foreign investors in these activities.
The news has been greeted enthusiastically by UAE businessmen.
“This is a great piece of news and will boost foreign investment in to the UAE,” said Shahzad Ahmed, chairman and CEO of Blue Ocean Group. “This is in line with the UAE Government’s decision to reform the investment and company laws to allow greater foreign partnership in local companies.
“With this and the Gold Visa and Permanent Residency – the UAE now has gone a step ahead of its regional peers in attracting investment – which will boost the economic growth. This will create new industries and help create more jobs in the UAE. In the next few years, we will see strong economic growth.”
Atif Rahman, director and partner of Danube Properties said: “What the UAE thinks today, others think tomorrow. The decision to allow 100 percent foreign ownership in local companies in 122 economic activities across 13 sectors will usher in a new era of economic growth and help boost investor confidence as well as increase foreign direct investment into the UAE.
“The key to grow an economy is to boost industrial output and exports. Opening up the manufacturing sector for 100 percent foreign ownership is significant as more investors will set up manufacturing plant and this in turn will boost industrial development.”